business essay

Cadbury Dairy Milk

Published: 23, March 2015

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Introduction

Cadbury Dairy Milk is one of the world’s biggest confectionery company holds number one or two positions in the 50 largest global confectionery markets. They create chocolate, gum and candy brands. There are nearly 50,000 employees in over 60 countries and sell their products in markets everywhere around the world.

History

Cadbury Dairy Milk chocolate was first introduced in 1831. It became the market leader when it launched and started to sell chocolates. It is still the top selling chocolate brand in the country. Cadbury Mega Brand's family product today has an international retail value approaching US $1billion. It is an international brand. Cadbury Dairy Milk carries the same distinctive image all over the world nearly 175 years. Wherever we buy a bar of Cadbury Dairy Milk the pack design will be exactly the same, only the language will be different. The famous slogan "glass and a half of full cream milk in every half pound" with the picture of milk pouring into the chocolate bar, is one of the all-time greats of British advertising.

Business Operations

John Cadbury was the founder of the Cadbury chocolate. He opened a shop in Birmingham, England and started to selling tea and cocoa in 1824. In 1831, he started manufacturing drinking chocolate and cocoa. In 2003, Adams Confectionery was acquired and through its number 1 brands including Trident and Halls. They became the leading worldwide confectionery company and the world’s number 2 in chewing gum.

Objectives

Before commencing a business, each and every management should decide on which market strategy they will be using and which strategy will help them for long term. They must take into consideration that correct and precise marketing objectives are set for their business. It will help the business to become as successful as possible in the future. The best way to ensure that the business have set realistic and achievable objectives for the business.

By using the following acronym of ‘SMART’, it helps to identify the business to make sure high-quality objectives are being set. It will help to maintain high sales for the product.

The acronym ‘SMART’ is to be checked over by businesses when setting its marketing strategy:

Specific

Measurable

Achievable

Realistic

Timed

Setting a competitive market, good quality objective helps to improve market. Common objectives must set to ensure the successful with the launch of new product. The main objective is to deliver superior shareowner returns. Carefully selecting ideas and markets will ensure the deliver growth and meaningful increases in margin.

Product

Health Risks - Many customers who are eating more chocolate were suffering from diabetic. There is no solution found for Diabetic.

Problem

Most of the people are suffering from diabetic. And there is no solution founded for the diabetic. Most of the people in the world are addicted to chocolate. Even the diabetic patients are still continuing to eat chocolate. The people who enjoy more chocolate become more fat and get medical treatment for diabetic and as well as the fat problems. People are not aware of, what they are buying and how much serious risks are associated with these kinds of sugar products. Chocolates won’t cause problem to everyone if they eat few. The problem occurs when there is no limitation. Some of the diseases are caused by food and beverages are:

Fat

Obesity

Heart Diseases

Diabetic

Cholesterol

Findings

Cadbury must face claim that the chocolate contain calories and fat. Children where encouraged to buy chocolate for promotion and to get gift from Cadbury. Cadbury force them to buy chocolate for £2000 to get the promotion. It causes them to suffer from fat and diabetic.

Some of the Cadbury products are contain melamine. That chemical makes milk appear to have more protein. This chemical causes kidney diseases. In china, according to World Health Organization three babies died and 54,000 people have sought medical treatment related to melamine tainted dairy products.

The food and beverages company are the responsibilities for making the people to become fat. All the food and confectionery company’s were violating consumer fraud statues by deliberately misleading consumers into thinking their products were healthy and nutritious.

Most of the food and confectionery company’s were violating consumer fraud statues by deliberately misleading consumers in to thinking their products were healthy and nutritious. The food industry and health campaigners are watching closely on behalf of several obese teenagers who claim the fats food company.

The food and beverages company are the responsibilities for making them fat. The research for these problems helps the food and confectionery company to make their product healthy and nutritious. Then to find a solution for the people who suffer from diabetic, obesity and fat problems.

Health Risks

Overcome from Health Risks

Avoid law suit

Is industry doing the right thing to reduce obesity?

Consumer needs and industry objectives

Objectives of Research

The main objective of the research is to develop a new product in the market that is not affecting the health of the people. Here we introduce ‘Cadbury Diet’ as a new product. Its mainly introduced for the people who suffer from diabetic. Cadbury Diet can be enjoyed not only by the diabetic patient as well as the children. We focus mainly on Diabetic patients and children.

Analysis from the secondary data

Cadbury facing claim that chocolate contain calories and fat. It causes people to suffer from fat and diabetic. Some of the Cadbury products are contain melamine. That chemical makes milk appear to have more protein. This chemical causes kidney diseases. In china, according to World Health Organization three babies died and 54,000 people have sought medical treatment related to melamine tainted dairy products.

The food and beverages company are the responsibilities for making the people to become fat. All the food and confectionery company’s were violating consumer fraud statues by deliberately misleading consumers into thinking their products were healthy and nutritious.

The idea of introducing ‘Cadbury Diet’ helps the diabetic patient from fat, obesity and sugar problems. Sugar patients were engaged to buy this chocolate forever, still it won’t affect their health.

Health Awareness

There are many contradictive conclusions in studies considering what kind of foods consumers are willing to buy. This is further an indication that consumers might not be aware of their opinion in this topic, or maybe they do say one thing and than acts differently. Many studies show that people are interested in their health and as a part of that, they want to eat healthy. This has encouraged producers to invest in brands that are supposed to communicate health, but the functional food revolution is still absent which might suggest that consumers are not interested in such food. These factors were mainly a general interest in health and that they had perceived a physiological effect of the product.

More over, respondents with a diet-related problem, personally or in the family, were more likely to consume cholesterol-lowering products than those without diet-related problems.

Marketing Plan

The product development includes product design, industrial design, manufacturing process design, packaging design, and outsourcing decisions. The last stages are marketing strategy, market testing and commercialization which involve developing a strategy, testing the product and finally coordinating market entry activities, implementing marketing strategy and monitoring and control of the product launch.

Product Research

Our innovation remains one of the key elements to the company’s success with new brands. Keep changing the catering tastes and lifestyles with quality products and the strong brand values force customer to buy. It will help us to new product development for the business strategy. The idea of introducing ‘Cadbury Diet’ helps the diabetic patient from fat obesity and sugar problems. Sugar patients were engaged to buy this chocolate forever; still it won’t affect their health.

The Buyer Decision Process and Focus on Customers

We mainly focus on Diabetic patients and Children. The reason for focusing for these customers is that they willing to eat chocolates. But their health condition and future of children health were controlled by the parents. If this product won’t affect their health then the parents encourage their children to buy this product. People are aware of their health problems. As this new product Cadbury Diet won’t affect their health then they were adopted to buy this product. Parents will encourage their children to buy Cadbury Diet.

The consumer becomes aware of the new product but without any information on it. For example, people get aware of products with health claims but do not know what the concept stands for. In the next step consumer gets interested in the product and starts to seek information about it. Evaluation is the third step which means that the consumer consider if it makes sense to try the product or not. He or she might, for example, think about the effect the product promise and how valid that information is. If the decision is to try the production order to get a better opinion, the consumer has entered the step named Trial. And if the opinion improves in a positive way the consumer reach the stage of Adoption, where he or she decides to make it a habit using the product.

Marketing Planning Strategy

Goal of increasing operating margins around 10% by end of 2011 with following elements:

Aim to reduce the complexity in business and minimize to duplicated activities. Taste and the flavour should not be same.

To improve the performance all over the world.

Main focus on profitable growth and rationalizing portfolio by the period of 2012.

Market Characteristics

Innovation remains one of the key elements to the company’s success with new brands. Keep changing the catering tastes and lifestyles with quality products and the strong brand values helps to keep the brand at a maturity stage. It will help to new product development for the business strategy.
Wherever the customers buy a bar of Cadbury Diet the pack design will be exactly the same and the Slogan will change as “Glass of Milk with sweet less cream”. There are nearly 40% of people suffer from Diabetic all over the world. By introducing sugar free chocolates helps to keep the market for a long term strategies.

Pricing Strategy

To reduce costs and increase speed and ability to compete in the market helps from other competitors. New comers cannot competitive with cost and efficiency. As this Cadbury Diet is a new product and focusing mainly on health, so we don’t worry about the introductory price of the product.

The estimated cost of this product is: £0.69 per 40g.

Marketing Mix

There are two types of strategies on various things based on Marketing strategies can helps to launch new product. Marketing strategy is a plan of action which is used by many businesses around the world, which helps the business meet its aims and objectives, it can also assist a business when launching a new product as it helps to identify which different strategies would be best to use. Marketing strategies can be split into two main categories which are: Short term and Long Term.

Short-Term

Short-term strategies help a business to focus mainly on the four P’s, product, price, place and promotion. These strategies are vital to all businesses. These four features are the main things in a business to achieve objectives. But it should be used correctly.

Product

Cadbury Diet innovation remains one of the key elements to the company’s success with new brands. Keep changing the catering tastes and lifestyles with quality products and the strong brand values force customer to buy. It will help us to new product development for the business strategy.
Wherever the customers buy a bar of Cadbury Diet the pack design will be exactly the same and the Slogan will change as “Glass of Milk with sweet less cream”.

Price

Price is an important element of marketing mix. The price is charged to determine whether the consumer will buy. Cadbury achieve the level of sales to make profit. Price is controlled by checking with the competitors charges.

The estimated cost of this product is: £0.69 per 40g.

Place

Cadbury Diet deal with beverages and confectionery like small shops, super markets and petrol station. These are the main places where customers visit in daily basis.

Promotion

By giving Advertisements, encourage customers to buy a product. People intend to participate in competition. As a part of new strategy we will announce 10,000 exciting prices by text or online entry by giving feedback about Cadbury Diet. As well as runner up prizes for the carnival theme. It motivates the customers to buy more chocolates. This promotion will be advertised by the Start of 2009, when the new product introduced for the Diabetic.

Consumer Behavior

Decided to make the customers marketing orientated mainly to younger customers by making the products affordable and appealing to children. Advertise in different ways to reach the product in the market. Research the type of chocolates that satisfy the customers and their tastes.

Positioning Strategy

Capability: Ensure world-class quality

Developing world-class skills, processes and way of working will motivate people and it helps to improve reward winning performance. Customers confirm by Commitments which have been carefully selected to both improve business and ensure on the wider world.
Marketing Strategy

Having a clear Vision into Action plan helps to read the customers mind by surveying. This aligns the energies and efforts of teams behind the brands, markets and projects. If these are carried out successfully then it will help on revenue, margin, and market performance.
Building commercial capabilities and recruiting employees from urban areas for product distribution. Ghana is the place we are mainly aiming to increase cocoa production.

Delivering preferred products at competitive cost with other competitor which affordable by the customer and their satisfaction.

Allocating Resource for the New Product Development. i.e., ‘Cadbury Diet’

Market Leadership Strategy

In the confectionery market Mars, Nestle and Galaxy are the main competitors. Introducing new brands and promotion to customers and retailers helps to increase sales revenue. Advertisements in channels and newspaper helps to retain the brand name in the customers mind.
Promotion

By giving Advertisements will encourage customers to buy the product at least for the competition? As a part of new strategy we will announce 10,000 exciting prices by text or online entry by giving feedback about Cadbury Diet. As well as runner up prizes for the carnival theme. It motivates the customers to buy more chocolates and they eager to buy chocolates. This promotion will be advertised by the end of 2009, when the new product introduced for the Diabetic.

Conclusion

Cadbury is the largest confectionery market in the world. It holds second position in the 50 largest confectionery markets. Nearly 175 years it survived in the market. But it should keep the same image in the market. It should keep researching about their SWOT analysis and market penetration to improve their market.

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